HMRC is consulting on proposals to formalise and extend the concession which removes trusts and estates from income tax where their only source of income is savings interest and the tax liability is below £100. Under the proposed change, trusts and estates with income from any source up to a de minimis amount (expected to be £500) will not be subject to income tax on that income.
The ATT welcomes the proposal to put the existing concession onto a permanent footing and to extend it to other sources of income including dividends, but also urges HMRC to ‘revisit previous work on trust taxation, with a view to simplifying and reducing the administrative burden for small trusts’. The change was originally announced by HMRC in its Tax administration and maintenance paper, published on 30 November 2021.
HMRC is consulting on proposals to formalise and extend the concession which removes trusts and estates from income tax where their only source of income is savings interest and the tax liability is below £100. Under the proposed change, trusts and estates with income from any source up to a de minimis amount (expected to be £500) will not be subject to income tax on that income.
The ATT welcomes the proposal to put the existing concession onto a permanent footing and to extend it to other sources of income including dividends, but also urges HMRC to ‘revisit previous work on trust taxation, with a view to simplifying and reducing the administrative burden for small trusts’. The change was originally announced by HMRC in its Tax administration and maintenance paper, published on 30 November 2021.
